HIGHLIGHTED NEWS
According to the Ministry of Finance, the majority of Vietnam's imported petroleum products currently come from South Korea, Singapore, Malaysia, etc., and enjoy a 0% tariff rate under FTA agreements. However, in the context of a potential shortage of crude oil supply due to geopolitical instability, the Ministry of Finance is submitting a draft decree to reduce the Most Favored Nation (MFN) import tariff on many petroleum products and petrochemical raw materials to 0%, aiming to expand imports from markets that do not have free trade agreements with Vietnam. The proposal suggests reducing the tariff on RON95 gasoline, naphtha, and reformate from 10% to 0%, while diesel, fuel oil, aviation fuel, and kerosene will be reduced from 7% to 0%. Several petrochemical raw materials such as xylene, condensate, and p-xylene are also proposed to have their tariffs reduced from 2-3% to 0%. The policy is estimated to reduce budget revenue by approximately 1,024 billion VND, but is considered necessary to diversify supply sources and contribute to stabilizing domestic gasoline and diesel prices. The decree is expected to take effect immediately upon issuance and will be applied until April 30, 2026.
TRADING STRATEGY
The stock market closed lower at 1,652 points with trading volume similar to the previous week's average. Selling pressure was widespread across most sectors. The most heavily impacted sectors included finance, real estate, basic resources, construction, and materials. The VN-Index is likely to test the support level around 1,620 points today.
The market continued its downward correction trend. The lack of easing geopolitical tensions, rising commodity and energy prices, and the global market's lack of reliable safe-haven assets have kept sentiment cautious. Foreign investors reduced net selling. Overall, the current market is primarily centered around the global oil price story, and any supportive actions by major international parties or organizations to stabilize the price of this commodity, often referred to as "black gold," could trigger a reversal and recovery in the stock market. Investors should carefully manage their portfolio allocation and consider increasing their holdings in medium-term strategic portfolios when supportive reversal actions appear, accompanied by confirming signals. Short-term trading should be flexible and adapt to cash flow movements.
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